Commercial calls it a CAP rate (NOI/Purchase Price), but even the CAP rate gets wonky in who defines it and what they include, etc.  

I can't argue with your numbers, you must have gotten them from somewhere but $200/month for a cap-ex holdback seems high.  

So i dont understand why anyone would want to invest in these properties.One property for example was 8,750,000 and had a cap rate of 5%. that means it only brings in $36,458 per month after expenses.

Depending on the fridge, this can be a $400 - $1,000 problem (scratch/dent) delivered that is a cap ex tax deduction. 

I wish I had just picked the first girl who made time to talk to me, blamed my absent daddy for not teaching me how to put a  cap on it, and knocked her up at 15.

I think RealCrowd and CrowdStreet both have learning centers that start with the basics, like what is a "Cap Rate" and go more advanced from there.   

The property is owned free and clear and here are the facts before rennovations:Sq ft: 2768Lot: 3073 sq ftGross monthly rent: $4000/moOther income (3 additional parking spaces, coin laundry room) $600/moTotal monthly income: $4600/mo50% rule for expenses: $2300/moCash flow: $2300/moRepair estimates would cost $50,000 based on the sq ft on cosmetic repairsAfter renovations, we can raise rents to $6000/mo which raises NOI to $44,400 per yearNow I know that's only a cap rate of 4%, would this deal make sense for buy and hold or rehab investors?

Getting in with Freddie bodes well for that relationship and future deals, as it does with a local bank; but the bank can only lend in your footprint, may have a cap on an individual borrower etc.

Some of my opportunities have been an offering of a pref return plus back-end and other deals similar to the structure you shared above with a capped return.Each opportunity has its own "story" based on the respective deal fundamentals.Since I am working on a totally different deal, but similar deal structure you outlined above, and please know that the following should not be construed as an offering or an open solicitation.With my deal I am very confident in my projections. 

Everyone sounds like it is best to offer at a cap rate of actuals.